The cost to a distributor for a product is $25. The distributor sells the product for $51 to the customers.

1. What is the amount of the markup?

Markup = $
$26
Correct

2. What is the markup based on the cost (expressed as a percentage)? Round the answer to two decimal places.

Markup based on Cost = 
%

To calculate the markup based on the cost, you can use the following formula:

\[
\text{Markup Percentage} = \left( \frac{\text{Markup Amount}}{\text{Cost Price}} \right) \times 100
\]

Given:
- Cost Price (CP) = $25
- Selling Price (SP) = $51

First, calculate the markup amount:
\[
\text{Markup Amount} = \text{SP} - \text{CP} = 51 - 25 = 26
\]

Next, calculate the markup percentage based on the cost:
\[
\text{Markup Percentage} = \left( \frac{26}{25} \right) \times 100
\]

Now, compute the value:
\[
\text{Markup Percentage} = 1.04 \times 100 = 104\%
\]

Therefore, the markup based on the cost is:
\[
\text{Markup based on Cost} = 104.00\%
\]

Would you like more details or have any questions?

Here are some related questions to further your understanding:

1. What would be the markup percentage if the cost price increased to $30 and the selling price remained the same?
2. If the distributor wants a markup percentage of 50%, what should the selling price be?
3. What is the profit margin if the selling price is $51 and the cost is $25?
4. How does the markup percentage change if the selling price is reduced to $45?
5. What is the break-even price if the distributor wants no profit or loss?
6. How do you calculate the selling price if you know the desired markup percentage and the cost price?
7. What is the percentage increase in the selling price if it is raised from $51 to $60?
8. How would the markup percentage be affected if the cost price included a $5 handling fee?

**Tip:** Always double-check your percentage calculations to ensure accuracy, especially when rounding to two decimal places.

Learn how to calculate markup percentage and amount based on cost for a distributor's product. This problem involves finding the markup amount and percentage using given cost and selling prices. Suitable for students in Grades 9-12.

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